See attached file for 3 problems: Tesla Motors, PC manufacturer and large insurance company claims
4. Tesla Motors needs to buy axles for their new car. They are considering using Chris Cross Manufacturing as a vendor. Tesla's requirement is that 95% of the axles are 100 cm ± 2 cm. The following data is MegaStat output from a test run from Chris Cross Manufacturing. Should Tesla select them as a vendor? Explain your answer.
sample variance 2.313
sample standard deviation 1.521
population variance 2.169
population standard deviation 1.473
standard error of the mean 0.380
tolerance interval 95.45% lower 96.896
tolerance interval 95.45% upper 102.979
1st quartile 98.900
3rd quartile 100.475
interquartile range 1.575
5. A PC manufacturer claims that no more than 5% of their machines are defective. In a random sample of 100 machines, it is found that 8.5% are defective. The manufacturer claims this is a fluke of the sample. At a .02 level of significance, test the manufacture's claim, and explain your answer..
Hypothesis test for proportion vs. hypothesized value
0.085 0.05 p (as decimal)
9/100 5/100 p (as fraction)
8.5 5.0 X
100 100 n
0.0218 std. error
.0541 p-value (one-tailed, upper)
6. The following table gives the number of claims at a large insurance company by kind and geographical region.
(A) Referring to the above table, if a bill is chosen at random, what is the probability that it is either from the East or from the West?
(B) Referring to the above table, given that the bill is from the Midwest, what is the probability that it is for a Physician's Visit?
The solution provides step by step method for the calculation of confidence interval, hypothesis testing and probability. Formula for the calculation and Interpretations of the results are also included.